(NEXSTAR) – Party City, once one of the top names in party supply retailers, is going out of business, according to an announcement from CEO Barry Litwin seen by CNN.
Litwin announced the news Friday during a conference call with employees. The outlet reported.
“Unfortunately, we must begin the downsizing process immediately,” Litwin said.
bloomberg Earlier this month, it was reported that Party City was considering filing for bankruptcy for a second time amid financial difficulties caused by sluggish sales. Party City Holdings previously filed for bankruptcy in early January 2023, but filed for Chapter 11 bankruptcy in September 2023 after its reorganization plan was approved by the U.S. Bankruptcy Court for the Southern District of Texas. I broke away from it. At the time, Party City CEO Brad Weston said the approval was a “significant milestone.” complete financial restructuring And we have successfully positioned PCHI for the future. ”
Litwin, who will take over in August 2024, said he plans to focus on the company's finances to support business continuity. In the LinkedIn post, He also suggested that the issue of money was important.
“Our main priority is strengthening our financial health, and we have a lot of work ahead of us,” he wrote.
CNN reported that Mr. Litwin had a phone call with a company employee on Friday, and that Mr. Litwin told the employee that today was his last day of employment at the company. It's unclear when the Party City store will close.
Party City officials did not provide further information.
Party City was founded in 1986 and has more than 700 stores in North America as of August 2024, according to Party City Holdings. The brand also sold party supplies on PartyCity.com.
